Satyam Firing Workers 'On The Spot,' Analyst Says

Satyam Firing Workers 'On The Spot,' Analyst Says

Beleaguered Indian outsourcer Satyam, whose chairman earlier this month admitted falsifying profits and revenue by more than $1 billion, is perilously close to running out of cash and is laying off employees summarily in a desperate effort to remain solvent, an analyst said in a report issued Thursday.


"The financial situation at Satyam is indeed dire, with inside sources confirming that the company lacks sufficient working capital to meet current expenses and employee salaries for this month," wrote Hansa Krishnamurthy Iyengar, an IT Support analyst at U.K.-based advisory firm Ovum.

To save money, Satyam is "firing employees on the spot" in the United States, Australia, New Zealand, and Europe, Krishnamurthy Iyengar wrote.

Satyam has claimed to have more than 53,000 workers worldwide, but the analyst said the real number is "far fewer."